Lanny’s Stock Purchases January 1st Through January 15th

2019 has been interesting to say the least.  I know the market is up and down every single day and earnings releases are just around the corner, literally.  I have been working through year-end reporting with regulatory filings, in addition to compliance filings, with external auditors/regulators barking on my door, therefore – work made the days pitch black in the morning and pitch black at night.  The only light being shed are the dividend stock purchases, right?  It’s now time to check out my dividend stock purchases over the first two weeks of January!

The stock purchases

It’s the start of the new year and I feel refreshed on the path to add more investments and dividend income through capital contributions, as the main artillery.  I am soon to be eligible to contribute to my new employer’s 401(K) plan (will start on 2/1/19, due to 6 month waiting period, which I’ll receive on the 2/8/19 pay).  Therefore, I currently have more cash on hand to deploy in the market and it made sense to start juicing up my taxable account.  The stock purchases you will read below may not be as significant of a purchase that I typically make (primarily due to building positions, etc.).  Lastly, one purchase was actually/already for my Roth contribution of 2019.  However, enough of my rant, let’s see what stock purchases I made over the last two weeks!

Stock Purchase – Delta Airlines, Inc. (DAL)

Here we go and I am back at it again!  Similarly, I won’t bore you with more details on Delta (DAL), as I have covered them many times in the past (recent analysis article) and had purchased them back in October, when they were trading at $51.70, after they announced a 15% dividend increase.  What’s the difference?  They dropped 11.9% due to lower than expected outlook on the 4th quarter.  Here are the quick-stats on the purchase by using the Dividend Diplomat Stock Screener:

  1. Price to Earnings: At $45.54 price with a forward earning projection of $6.65 for 2019 (from 21 analysts), this equated out to a p/e ratio of approximately 6.84, which is well below the overall market on average.
  2. Dividend Growth: They are also young in their dividend streak, as they are on 5 years now, consecutively.  Their recent increase was approximately 15% and the double digit was extremely appreciated!  See why the impact of the dividend growth rate is real!
  3. Dividend Yield: With the $45.54 price point, at a dividend of $1.40, their yield was at ~3.07%, well above the S&P 500 (on average).
  4. Payout Ratio: Based on forward earnings of $6.65 and a dividend of $1.40 per year, this equates to a payout ratio of 21%.  A super low payout ratio.  They can grow dividends by double digits, no problem, in the near and long term.

Here is proof of my investment:

In summary, I purchased an additional 22 shares on 1/3/19 at $45.54 with a $3.95 trading fee for a total cost of $1,005.79. The 22 additional shares added $30.80 to my forward dividend income projection.  In total, now, I own over 62 shares of DAL, which produces $87 in dividend income per year.  I believe this position is as full as I’d like them to be.

Stock Purchase – Vanguard High Dividend Yield ETF (VYM)

Now, this isn’t an individual stock but an Exchange Traded Fund (ETF) and is for my retirement or Roth IRA purchase.  This isn’t my first time, as I purchased them back on December 4th, or a full month before this.  I wanted to make the Roth IRA easier on myself and to avoid trying to time the market, perform deep/thorough analysis on a stock or two and ultimately wanted to reduce the monitoring as well.  See deeper reasons why I chose the Vanguard High Dividend Yield (VYM) ETF, here.  The fun part is – the ETF price declined by 9.4% since the initial purchase, which also received a subsequent higher year-end dividend payout.

Therefore, when using their trailing 12 month dividend of $2.6492, this equated to a dividend yield of 3.44% at an $77.00 price point.  I did just as I thought I would, from reading that first article, where I said I would buy more in 2019 if it dropped.  Therefore, if prices hit at/around $75-$77 again, I will more than likely buy again in the future.

Here is proof of the investment purchase below:

In summary, I purchased 20 total shares on 1/3/19 at $77.00 with a $3.95 trading fee for a total cost of $1,543.95. The 20 shares added $52.98 to my forward dividend income projection.  In total, the VYM ETF produces over $205 going forward.

Stock Purchases Summary & Conclusion

I deployed a total of $2,549.78 in capital and added $83.78 in forward dividend income. This equates to an average yield of 3.29%.   However, this journey is far from over and gosh dammit, I need to lace up my boots and continue to move forward through 2019.  I need to be adding at least $175 per month, AGH!  Let’s go and get it everyone!

I’ll continue to say this, thus far, through January.  Turn that noise off everyone.  Stick to the strategy that has worked for you and review to see if there is anything that you need to see out there that may impact your strategy going forward.  You are in control and the emotion button is hard to turn off.  Persevere and stay consistent, if you can and are able to.  Lastly, my dividend portfolio has been updated and I am locked in and ready for further opportunities.

What other investments are you seeing out there?  What industry has been your preference as of late?  Anyone just stock piling capital and/or cash?  Thanks again everyone, and, as always, good luck and happy investing!

-Lanny

Facebooktwitterredditpinterestlinkedinmail

21 thoughts on “Lanny’s Stock Purchases January 1st Through January 15th

  1. I’m thinking of doing the same this with my Roth contribution for 2019 as well. Just throw it at VYM or some other similar dividend growth focused ETF and just let it ride. Time will tell though. If the markets start going haywire when I move the money over then I just might pick an individual company.

    • JC –

      Yes, my thoughts with the Roth, now, are to reduce the amount of research and constant review and to place it in an ETF that yields above average with solid increases year, over year, with a low expense ratio. VYM won, haha.

      -Lanny

  2. Whew, it’s been a while. Had a hectic last 6 months of 2018, but I’m back. Nice to see you build up that Delta position. I would like to add them to my portfolio in the future. Also, VYM has long been on my watchlist, but I am solidifying my current portfolio before I add new positions.

    Right now, I am building in some higher risk REITs, and some stable positions. So far in 2019, I have added positions in ETJ, AGNC, O, ABBV, AEP, GLAD and GAIN. Although, I think my favorite “new” finds are the Invesco High Dividend ETFs. I recently added BSJQ to my portfolio. It should be interesting until it matures in 2026. For now, I will pay off my car by April, and keep building. My 2019 looks to be a fun year for investing

    • New!

      NICE! Paying off that car will reduce stress and open up cash flow to produce… even more cash flow! I see you are going for yield, right now, make sure to spread the wealth around to other sound businesses too! VYM has been solid, thus far. It surely won’t be the last time I scoop up a ton of shares.

      -Lanny

  3. Hi Lanny,
    interesting buys. Delta was never really on my potential investment list. But I will have a deeper look into it.
    Anyway congrats on the investment and the gain on the dividend income.
    Cheers

    • DICF –

      Thanks for stopping by. I usually don’t make too many Roth purchases this early, but thought to jump and get a crack at it while I can and with prices where I liked seeing them. DAL has been a great investment, from the dividend increases I’ve been receiving. Excited to see what they do this year to the dividend as well. I anticipate 12-15%.

      -Lanny

  4. Delta does sound pretty cheap – the P/E ratio of our main Australian airline, Qantas, is around 10x, but they’ve had a good run the past couple of years. For the few years prior to that they were trading around 6x, and the share price has climbed much higher since then – hopefully a similar pattern happens with Delta!

    Cheers, Frankie

  5. Great buys Lanny! With the uptick in oil supply and thus low gas prices, DAL profits should do well this year. As for the Vanguard ETF, we love almost anything Vanguard! 🙂

    Best wishes and success on your journey my friend! AFFJ

  6. Hi Lanny
    I like your picks, especially your ETF investment. I’ve never considered buying airline stocks so far, there are several factors holding me back (very cyclical, immensensly capital intense, cut throat competition etc.) but I see very attractive valuations. I will keep an eye on that Industry but clearly, the backbone of my portfolio will always be consumer staple stocks (KO, JM Smucker, Reckit Benkiser, Henkel, Nestle, Unilever, Britvic, Nichols, British American Tobacco etc.).
    Keep it up your great work, I enjoy reading the progress you and Bert make year by year, it’s very inspiring.
    Cheers
    Financial Shaper

    • F. Shaper –

      Thank you for the comment and appreciate the enjoyment from the ETF pick! Yes, barrier to entry, though, is also high and if you want to fly, the consumer will have to purchase a ticket from Delta, United Airlines, AA, Southwest or a discounted airline. Therefore, there’s a bit of a pro/con to the investment, including what you had stated. So I def. agree on it being cut throat and capital intensive. It’s quite interesting, actually. Further, the ability to retain customers is also very difficult, you know? It’s very interesting.

      -Lanny

  7. Airlines worry me in general, but I am not sure whether that is just an unfunded bias or not. Doesn’t it feel like they are boom and bust every 10 or 15 years (with airplane depreciation and oil prices)? Again, I could just be making that up in my head. Love the ETF purchase!

  8. Impressive way to start the year Lanny. Two purchases and more than $80 added to your projected dividend income in just half of the month is incredible.
    I like your buys. I was skeptical about Delta Airlines a year or so ago, but I can see that really pays off and is working well in your portfolio.
    For my part, I did one purchase so far this year and initiated a position in Target.
    Keep it up and I am pretty sure that these were not your last buys for January! 🙂
    BI

  9. Solid purchases Lanny! I’m a big fan of VYM and have a pretty good position in that myself. It is nice to have a holding like that where you can take more of a “set it and forget it” type approach as it doesn’t require quite the same research and analysis.

    I’ve only made one buy so far in January, MMM (haven’t written up a post as of yet) but am definitely looking to make another buy or two before the month ends. Keep doing that work!

Leave a Reply

Your email address will not be published. Required fields are marked *